As a few have intimated already:
Our blessed country is BROKE; the Eurozone might shortly go down the pan (pulling our exports/revenue/economic growth even further down with it) and the outlook is a stark realisation that things are, on a balance of probability, going to get worse before they get better.
Taking heads out of the sand, realising that we're paid pretty well compared to some sectors (after all YOU volunteered for public sector work!) and not moaning about a pay freeze and a 1% gesture is wise right now.
Get real or get out, quite frankly. You'll be lucky to get a job on the outside over the next few years..